Resetting Price Controls for Privatized Utilities

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QUOTEThe aim of regulation is to protect consumers, while ensuring that the company remains viable and has an incentive to operate efficiently.QUOTEIn many developing countries private companies are replacing government agencies as owners and operators of infrastructure services. Governments must now develop new skills in economic regulation of these private providers to protect consumer interests, while also ensuring that the companies remain economically and financially sound and have incentives to operate efficiently. This manual provides new economic regulators with practical guidance on how to proceed in this fairly technical new field.Chapters cover: Am Revising Price Controls Am Procedures for Resetting a Price Control Am Present Value Calculations Am Investment and the Regulatory Asset Base Am The Rate of Return Am The Philosophy of Price Controls Am The Form of a Price Control Am Operating Costs Am RevenuesA Manual for Regulators Richard Green, Martin Rodriguez Pardina. = Free cash
flow to equity + Interest expenses (1 - Tax rate) + Principal repayments - New
debt issues = Free cash flow to the firm. ... above that Daamp;A is subtracted from
EBITDA to obtain EBIT; afterward, Daamp;A is added to net income to get the free
cash flow.

Title

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Resetting Price Controls for Privatized Utilities

Author

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Richard Green, Martin Rodriguez Pardina

Publisher

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World Bank Publications - 1999

ISBN-13

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